Corporate Social Responsibility in South Europe during the Financial Crisis and Its Relation to the Financial Performance of Greek Companies

Ioannis Ziogas,Theodore Metaxas

doi:10.3390/su13148055

Abstract

This paper aims at presenting the notion of corporate social responsibility in Europe by examining its application in Southern European countries, Greece, Italy, Spain and Portugal. These major Mediterranean countries, beside the geographical proximity and common features, were at the center of the financial crisis in Europe in 2009. The aforementioned countries are under evaluation on the one hand as a European region and on the other hand as independent ones. Considering the complexity of CSR, its aspects through time, its diversity depending on the geographical position and the necessity of ethical CSR as part of business activity, this paper presents a new categorization of existing quantitative indicators and a method of evaluation that covers the multidimensional notion of CSR. The new model, which combines quantitative indicators, is used to measure CSR during the period from 2009 until 2016 and reflects companies’ ethical policy, the degree of understanding their moral obligations. The longitudinal comparative analysis is the starting point for further improvement as the countries, except for Portugal, are fluctuating within low levels and the Mediterranean region as a whole in average ones. Furthermore, having estimate CSR index, the examination of the financial performance of Greek companies within the period 2015–2016 confirms the majority of the literature that the adoption of CSR’s good practices, is not only a moral rule, but contributes at least partly, to the development of their effectiveness. As a conclusion, the structure of a commonly acceptable measurement model of the National Social Responsibility and the longitudinal measurement will be a useful tool for all involved institutions, with immediate results to both the society and the companies.

Highlights

Due to financial crisis that appeared in America and European countries, climate change, moral dilemmas and issues that arise social concern, the interest in corporate responsibility in society, as well as the benefits offered to the community at large, have increased
The evidence has been used to compare the countries as well as to compare the geographic Mediterranean region where they belong in relation to the rest of the European countries
Knowing the CSR index of Greece during the period of financial crisis, the aim has been to investigate the relation of CSR to the efficiency of the corporations and to find out whether the benefits of these practices are reflected in the financial performance

Summary

Introduction

Due to financial crisis that appeared in America and European countries, climate change, moral dilemmas and issues that arise social concern, the interest in corporate responsibility in society, as well as the benefits offered to the community at large, have increased. Executives have comprehended that in effort to increase their income they have a responsibility towards society [1]. There have been numerous studies and concepts developed relating to how corporations can include matters of corporate responsibility within their entrepreneurship [2]. The notion of CSR is complex, multidimensional, related to many similar definitions and has evolved through years, differentiated among geographical areas. Though, of all notions is that they reflect the social benefits of business success and they are comprised of methods

Objectives

Methods

Results

Conclusion